Consumers are bracing for yet another round of fee hikes as First Global Bank Limited (FGB) and VM Building Society (VMBS) prepare to increase service charges in the coming weeks. Less than three months after several other financial institutions raised their fees, customers of FGB and VMBS will now face higher costs for various banking services.
Starting September 22, FGB will implement a range of fee increases, with adjustments between 5 to 10 percent across multiple services. These hikes will impact transfer fees and other account-related services, with online transactions increasing by 5 percent and in-branch services rising by 10 percent.
One of the notable increases is the adjustment to the in-branch Real Time Gross Settlement (RTGS) fee for senior citizens, which will go up from JMD $2,000 to JMD $2,200 — a 10 percent hike. Meanwhile, the online RTGS fee will rise by 5 percent, from JMD $275 to JMD $288.75. Regular RTGS fees for other accounts will remain unchanged. FGB’s fee structure continues to emphasize the cost difference between in-branch and online transactions.
Outgoing wire transfers will also see a rise, with fees increasing by 5 to 10 percent for both in-branch and online transactions. The in-branch outgoing wire transfer fee will jump from US$45 to US$49.50, while the online fee will rise from US$35 to US$36.75. These increases will apply to outgoing wire transfers in foreign currencies, while the Jamaican Dollar (JMD) rate will remain the same. Incoming wire transfer fees for both JMD and foreign currency transactions are also set to rise.
In addition to transfers, a variety of other services will experience fee adjustments, including online ACH transfers, manager’s cheques, standing order (PAP) initiation, cheque encashment, and various fees related to current accounts, overdrafts, and stop payment orders. Cash handling fees, bills for collection, withdrawal fees, replacement cards for Visa debit cards, credit card fees, and other credit-related charges will also see changes.
Notably, FGB will introduce a new point-of-sale (POS) fee of JMD $11 for transactions made using FGB Visa debit cards on both FGB and non-FGB POS machines.
VMBS will follow suit with its second fee adjustment of the year on September 19, having last raised its fees in February. Among the increases, the outgoing RTGS fee to other banks will jump by 25 percent, from JMD $160 to JMD $200. Additionally, VMBS will impose an 86 percent increase on withdrawals at non-VMBS Automated Banking Machines (ABMs), with fees rising from JMD $51.50 to JMD $83.50, plus General Consumption Tax (GCT), bringing the total fee to JMD $96.03.
This sharp increase in ABM withdrawal fees comes just a year after a series of attacks on cash courier companies, highlighting the ongoing challenges in secure cash handling.
These fee adjustments at FGB and VMBS come on the heels of similar increases by other major Jamaican banks. JN Bank Limited and Sagicor Bank Jamaica Limited both raised their fees in July, while FirstCaribbean International Bank (Jamaica) Limited did so in May. JMMB Bank (Jamaica) Limited adjusted its fees earlier this year in February, and National Commercial Bank Jamaica Limited (NCBJ) and the Bank of Nova Scotia (Jamaica) Limited (BNSJ) implemented their latest fee hikes in November 2023.
As these changes take effect, consumers will need to carefully evaluate their banking options and seek out more cost-effective solutions to manage rising fees across the sector.
